COP29: Climate finance, biodiversity in a new strategic shift

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The 29th United Nations Conference of Parties (COP29) opened on Monday, in Baku, Azerbaijan, bringing together world leaders to discuss solutions to tackle the ever-worsening climate change.

It kicked off with the COP28 President Dr. Sultan Al Jaber handing over the presidency to Azerbaijan’s new COP29 President-Mukhtar Babayev, also the Minister of Ecology and Natural Resources.

The leaders are here to set achievable targets for Climate finance and biodiversity conservation amid a critical shift in global climate policies.

On Tuesday, the head of state, His Excellency Mr. Ilham Aliyev, President of the Republic of Azerbaijan, an Eurasian state, hosted world heads of state to participate in the World Leaders Climate Action Summit (WLCAS), taking place on 12 and 13 November 2024.

The conference will run all the way to 22 November and the bar is set very high since it should have a clear bias in direction towards a new climate finance mechanism, on the review of global carbon market structures, and so on.

The 29th United Nations Conference of Parties (COP29) opened on Monday, in Baku, Azerbaijan. (Credit: UN Climate Change)

This summit represents an important stage for heads of state to review and strengthen climate change action. This time around, however, the hope is that they will not only get money for their climate action.  

COP29 is being called the ‘Finance COP’ as it’s all about climate finance and we hope world leaders will make big commitments to the New Collective Quantified Goal (NCQG) to scale up financing for mitigation and adaptation.

The NCQG aims to raise $100 billion annually for climate finance but at COP28 only $83 billion was pledged and most of it was in the form of loans not grants.

A big discussion at COP29 will be how to close this funding gap, especially through increasing grants so that countries like Uganda which is heavily dependent on agriculture can access the funds they need to adapt to climate change.

While opening the World Leaders Climate Action Summit at COP29, President Aliyev pledged to do whatever it takes to find common understanding between developing and developed countries, between Global South and Global North.  

The Final Countdown

UN Secretary-General António Guterres called world leaders at the COP29 Climate Action Summit in Baku that "we're on a final countdown" to avert climate change catastrophe.

Regarding the 2024 high-temperature weather disasters, he emphasized the pressing need to limit global warming to 1.5 °C or less and showed the uneven distribution of climate damages, with the poorest people being most vulnerable to emissions driven by the wealthier.

Guterres urged prompt reductions by 43% of emissions by 2030, more funding for adaptation, and changes to climate finance, with new taxes and bolstered support from multilateral institutions.

He emphasised that “climate finance is not charity, but an essential investment in a liveable future. Warning that "the clock is ticking," Guterres asked "world leaders to act decisively, as the decisions made today will determine the destiny of the planet.

UNFCC Secretary

The UN Climate Change Executive Secretary Simon Stiell highlighted the need for increased global climate investment, noting that while $2 trillion is predicted for clean energy this year, most of it benefits only a few large economies.

Climate finance has to get where it is needed the most, Stiell remarked, indicating that climate change is now an economic and inflation emergency affecting all.

Stiell called on countries to achieve fiscal success, characterising climate action as "global inflation insurance" in the face of the growing risk to food and supply chains posed by climate impacts.

He welcomed the progress of Article 6, creating a carbon market to speed up the actions of countries to implement schemes of climate for cost and to cover them in particular the developing countries.

Regarding the oil and gas sector, Aliyev accused Western nations of “hypocrisy” for relying on the country’s energy while pushing climate goals that target fossil fuels.

He further criticised Western governments and media for “lecturing” his country yet benefiting from its resources, arguing, “Oil and gas are a gift from God, necessary for the world market.

He pointed out Europe's recent agreement with Azerbaijan to almost triple its gas imports after Russia's Ukraine invasion, highlighting the European reliance on fossil fuel energy for the security of supply.

This position supports Uganda and Tanzania's plans for the East African Crude Oil Pipeline (EACOP), because it highlights the continued importance of fossil energy for economic development and energy security, despite climate change targets at the global level.

But what sets COP29 apart?

Apart from the new policies and so many unknown pathways, this summit is a critical platform for heads of state to discuss and enhance efforts in combating climate change. This time, developing nations are optimistic that they will receive financial support for their climate initiatives despite opposition from developed countries.  

There is a noticeable increase in discussions at COP29 is finally recognising biodiversity’s role in climate resilience and we’re moving away from the sole mitigation focus.

Biodiversity is now seen as key to long-term adaptation as shown by the launch of the UN’s Decade on Ecosystem Restoration which aims to restore 350 million hectares of land by 2030.

This means biodiversity is now being brought into climate finance discussions and new funding avenues for countries with natural resources rich and vulnerable to climate impacts.

António Guterres, UN Secretary-General, meets with Ilham Aliyev, President of Azerbaijan at the 29th United Nations Conference of Parties (COP29). (Credit: UN Climate Change)

This trend is the outcome of growing awareness of the multi-dimensional nature of biodiversity/climatic targets–in particular, the decrease in species extinctions, preservation of ecosystem health, and support of functional and sustainable land management.

Furthermore, the summit has given more attention to local finance mechanisms with the goal of more efficiently attracting resources for community-led adaptation and mitigation projects.

This is in the wake of appeals emanating from the developing nations for climate finance which is available on an accessible basis and that comes directly to serve the impoverished groups.

Another parallel trend is the establishment of regional climate financing cooperation partnerships, such that countries are able, via sharing resources, expertise, and risk screening, to build a more robust financing model. These collaborations are aimed to assist developing countries to implement Nationally Determined Contributions (NDCs) without solely relying on foreign grants or commercial loans.

Lastly, having incorporated new regulations on fossil fuel subsidies, COP29 takes another step towards developing global frameworks to phase them out. The presentation aims, among others, to define the timeline and conditions for fossil dependence replacement, an issue not fully addressed in COP28.

These agenda updates are a harbinger of a strategic shift away from general commitments towards concrete, localised and trans-sectorial commitments, in line with the increasing complexity and the pressure the climate negotiations are facing.

Still, this year's COP is set to be a pivotal forum for advancing global climate action, building upon the Dubai agenda, and promoting the conversation around fossil fuel alternates, renewable energy pledges, and, in particular, affordable climate finance.

What's in it for Uganda?

Uganda is using COP29 to address its growing climate crisis including the impacts of erratic weather on agriculture and water resources.

Minister Sam Mangusho Cheptoris is leading the delegation and will be advocating for more international support for Uganda’s climate adaptation programs including large-scale irrigation projects to reduce dependence on rainfall.

In 2023 Uganda had significant crop failures due to prolonged droughts and so climate finance is urgently needed to protect its rural population that depends on agriculture.

Before COP29, Margaret Athieno Mwebesa, the Commissioner for Climate Change, viewed COP29 as a key opportunity to advocate for sustainable solutions.

Uganda has suffered greatly from climate change consequences as, among others, erratic rainfall, extended droughts, and water logging which, in turn, have direct consequences on the livelihoods of millions of people depending on agriculture and natural resources.

COP29 for Uganda represents an opportunity to draw attention to these risks, and to leverage commitments that can help advance the country's Vision 2040 and the Third National Development Plan (NDP III).

However, the stakes are higher than ever. COP29 is at a crossroads. Global leaders must get beyond the politics of fossil fuel and make sure climate finance reaches those who need it most especially the most vulnerable countries.

For example, the Green Climate Fund’s $2 billion pledge to support vulnerable countries is a step in the right direction but many say it’s not enough. As the clock ticks down to 1.5°C the decisions made in Baku will determine the fate of human and ecological survival in the next decades.

(This story was produced as part of the 2024 Climate Change Media Partnership, a journalism fellowship organized by Internews Earth Journalism Network and the Stanley Centre for Peace and Security)